B2.811 Calculation of post-cessation receipts chargeable to tax—example
The calculation of post-cessation receipts chargeable to tax where the accounts are prepared under GAAP is illustrated by the following example.
C's results for the year ended 31 December 2019 show:
Work invoiced £60,000, opening debtors £5,000, closing debtors £10,000.
Expenses incurred £19,000, opening creditors £2,000, closing creditors £3,000.
Work in progress on 1 January 2019 of £9,000, 31 December 2019 of £13,000.
C discontinues his profession on 31 December 2019. He collects £4,000 of the outstanding debts on 1 March 2020 and £3,500 on 1 June 2020, but on 1
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